How Does Private
Mortgage Insurance Differ from FHA Insurance?
Although the insurance protection concept is
similar, there are differences between private mortgage insurance and FHA. FHA insurance
is a government-administered mortgage insurance program that does have certain
restrictions. FHA has maximum regional loan limits that are lower than those with private
mortgage insurance. FHA may be more expensive, takes longer to receive approval, and has
fewer payment plan options. FHA insurance lasts for the life of the loan, unlike private
mortgage insurance which is cancelable in most circumstances. FHA is a good choice for
some borrowers with credit history problems that might need special assistance.